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Lutek Ben: insider trades

Officer at Globe Life. No open-market purchases and 15 sales not made under a pre-set plan, reported from February 22, 2011 to October 27, 2017.

What happened after Lutek Ben’s sales?

After their sales, the shares moved +3.9% against the index over 12 months on average (a negative figure means selling was the right call); 33% trailed it.

With 296 insiders tested, some will look skilled or unskilled by chance alone: when we replaced each insider’s stocks with random companies bought on the same days, about 5.7 cleared the bar ahead and 23.3 behind. One record on its own proves little.

Trade by trade

MeasuredTrades countedAverage vs S&P 500MedianWent the right wayYearst-statisticp-valueEvidence
Purchases, 3 months after the report 0 — — — — — — Not enough years
Purchases, 6 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the trade 0 — — — — — — Not enough years
Sales, 3 months after the report 15 +0.9% 0.0% 53% 6 0.45 0.67 No reliable evidence
Sales, 12 months after the report 15 +3.9% +3.2% 33% 6 1.32 0.24 No reliable evidence
Sales, 12 months after the trade 15 +4.3% +6.0% 40% 6 1.44 0.21 No reliable evidence

“Average vs S&P 500” is the stock’s return including dividends minus the index’s over the same dates, from the close on the first trading day after the report, or from the close on the trade date. Only windows that have finished are counted. For sales, a negative figure means the stock lagged after it was sold, so selling was the right call (green). “Went the right way” is the share of purchases that beat the index, or of sales that trailed it. The t-statistic uses one average per year of reports, because one person’s trades bunch into the same stock and weeks, and needs trades in at least four different years; the p-value comes from the t distribution with that number of years (with four years, a t of 2 has p = 0.14). “Some evidence” means p under 5%, “strong evidence” p under 1% over at least six years.

Companies traded

CompanyTitle on the latest filingPurchasesSalesFirst reportLatest report
Globe Life GL Exec. VP & Chief Actuary015February 22, 2011October 27, 2017

Trades and what followed

Moves are against the S&P 500; green means the trade went the insider’s way.

ReportedTradedCompanyTradeValue3 months after report12 months after report12 months after trade
October 27, 2017October 26, 2017 GL Sale $4,414,725 −2.7%−5.1%−7.8%
April 24, 2017April 24, 2017 GL Sale $2,022,038 −2.1%+0.1%−0.7%
February 28, 2017February 24, 2017 GL Sale $2,312,400 −5.0%−7.3%−5.9%
February 7, 2017February 3, 2017 GL Sale $2,419,300 −1.8%−4.7%−3.4%
November 10, 2016November 9, 2016 GL Sale $2,329,950 +0.4%+0.1%+4.4%
October 31, 2016October 27, 2016 GL Sale $1,522,800 +8.0%+10.4%+11.8%
May 30, 2014May 30, 2014 GL Sale $807,500 −4.2%−5.7%−5.7%
August 5, 2013August 1, 2013 GL Sale $1,009,960 −1.9%−1.5%−5.6%
May 7, 2013May 7, 2013 GL Sale $878,640 +6.5%+9.7%+9.7%
March 26, 2013March 25, 2013 GL Sale $884,850 +6.8%+10.5%+11.8%
February 19, 2013February 15, 2013 GL Sale $755,460 +5.9%+13.3%+14.3%
September 14, 2012September 14, 2012 GL Sale $992,625 0.0%+18.7%+18.3%
March 16, 2012March 14, 2012 GL Sale $818,565 +2.3%+6.5%+6.0%
February 13, 2012February 9, 2012 GL Sale $703,050 −1.1%+3.2%+6.6%
February 22, 2011February 18, 2011 GL Sale $657,589 +2.2%+9.9%+10.2%

Open-market purchases and sales of at least $10,000 in companies we cover, from SEC Form 4 filings; sales made under a pre-set Rule 10b5-1 plan are not shown. “Not yet” means the window has not finished or the share price was under $5 at entry. These are the shares’ moves after each trade: they say nothing about why Lutek Ben traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.